Pam's Insurance Site

About Me

When I bought my first house, I was already going into a lot of debt. I didn't have the money to seriously insure it, so I bought only the bare minimum without consulting an insurance professional. That was a big mistake on my part. It could have turned out alright. That is, if my house hadn't been in the path of a huge storm. Huge gale winds knocked a tree down straight through my roof. My house was practically destroyed, and my minimal policy didn't cover nearly enough. I spent years and years trying to get myself out of that financial mess. Since then, I have always been very cautious in learning about insurance and talking to the real professionals.

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Teens are expensive to insure in general, but if you are paying for a teen to have SR22 insurance, your rates will be even higher. SR22 is not strictly a type of insurance. Rather, it is a certificate sent by your insurer to the state verifying that you have coverage. SR22 certificates are usually court ordered after a driver has been in an accident or committed some type of offense.

If your teen has to have SR22 insurance, here are ways you can help to make it cheaper:

1. Encourage your teen not to speed

Not speeding won't have an immediate effect on your teen's SR22 insurance rates, but over time, a safe driving record is one of the most effective ways to lower rates. Talk with your teen about why safe driving habits are so important right now and let them know the financial implications of speeding.

To make the message hit home, you can try a few different angles. You could have your teen pay all or a portion of the SR-22 insurance costs – if the rates get too high for your teen to afford, your teen will lose coverage and not be able to drive. That can be a huge motivator.

Alternatively, if you prefer to pay for the insurance, or if your teen doesn't have a job, consider putting a tracking device on the car. There are devices that can alert you if your teen speeds, and you can then take away driving privileges.

2. Buy a car that's cheap to insure

When trying to find cheap insurance rates for teens, the car they drive is very important to consider. This is true whether your teen needs SR22 insurance or not. Stay away from brand new cars, as they can be expensive to insure, but don't get something so old it doesn't have safety features like airbags.

Instead, look for a sturdy four-door sedan or minivan that's safe, reliable and about seven years old.

3. Hire a tutor

Kids who get good grades also qualify for cheaper insurance rates. If your child is already on the honor roll, make sure your insurance company knows, but if he or she isn't getting above a B average, consider hiring a tutor.

4. Educate your teen about the risks of MIPs and other non-driving related offenses

If your teen is caught drinking, he or she may be issued an MIP or Minor in Possession charge. This charge has a range of penalties depending on the state you live in and how many prior offenses your child has had. However, in many states, MIPs result in suspended licenses, and in some cases, you can get negative marks on your driving record for these types of charges.

Your teen may not be aware that activity done outside a car can affect his or her license and thus their insurance rates. Make sure your teen understands the laws in your state and knows which activities to avoid if he or she wants to keep affordable insurance.

5. Watch for changes in how rates are factored

When insurance companies calculate their rates, they use a range of factors including the driver's age, the driver's driving history, where the driver lives, their credit score and other elements. In some cases, the exact formula used can vary from company to company. For this reason, it is critical to comparison shop when looking for SR 22 insurance for a teen or an adult driver.

It's also important to realize that companies that focus on high risk drivers may be able to offer you more affordable rates. In addition to comparison shopping to make sure you get the best deal, also keep an eye on changes in the industry.

For example, some companies are exploring changing to a pricing model that calculates specifics about each trip in order to set prices. Changes like this could really affect your rates, so it's important to stay apprised of what's going on in the industry or to have an agent who is willing to keep you updated. If you still need more information, you can learn more about SR22 insurance over at this website.